You and I may believe that a college degree is not the best indicator of knowledge, but industry at large (both inside and outside of technology) does not. Furthermore, proving a lifetime of learning and knowledge in the span of at most 8 hours is dubious at best and impossible at worst.
College dropouts (Gates, Jobs, Ellison, Zuckerberg, etc) can make it to the top in the tech world. OTOH, top tech companies like Google and Facebook routinely screen out candidates with Bachelors, Masters, and PhD degrees from top schools because they don't pass the technical interviews. This process itself is surely imperfect, but the ability to solve hard problems on the spot is generally more valued than a vegetable with a (once) sacred piece of paper.
Interestingly, Google has seemed to go in the opposite direction. From being staunchly vocal about hiring only graduates from top universities when they were still comparatively small, to coming out and saying that educational histories not correlating in any meaningful way with employee performance as they've grown.
